Parsons Corp (PSN)

Return on assets (ROA)

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Net income (ttm)	US$ in thousands	78,676	54,172	28,241	161,149	144,372	126,496	101,550	96,664	97,506	87,293	75,700	64,072	56,710	78,010	94,607	98,541	90,652	106,806	123,766	120,534
Total assets	US$ in thousands	5,443,340	5,238,730	5,098,440	4,804,060	4,732,990	4,507,510	4,255,810	4,198,140	4,094,990	4,109,800	3,808,840	3,830,940	3,823,930	3,839,300	3,865,000	3,937,700	3,918,760	3,451,180	3,488,600	3,450,370
ROA		1.45%	1.03%	0.55%	3.35%	3.05%	2.81%	2.39%	2.30%	2.38%	2.12%	1.99%	1.67%	1.48%	2.03%	2.45%	2.50%	2.31%	3.09%	3.55%	3.49%

September 30, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $78,676K ÷ $5,443,340K
= 1.45%

The return on assets (ROA) for Parsons Corp has fluctuated over the past 20 quarters. The ROA has ranged from as low as 0.55% to as high as 3.55% during this period. The trend in ROA shows some variability, with peaks and troughs observed over the quarters.

The company's ROA was below 2% in the earlier quarters, indicating lower profitability in relation to its total assets. However, in recent quarters, the ROA has improved, surpassing 2% and even reaching as high as 3.55%, suggesting that the company has become more efficient in generating profit from its assets.

It is important to monitor the trend of ROA over time to assess the company's ability to utilize its assets effectively to generate profits. The recent uptick in ROA is a positive sign, but continued monitoring is necessary to evaluate the sustainability of this improvement.